Fifth’s a charm? EDF price rise undercuts competitors

Today EDF Energy became the fifth of the Big Six energy companies to announce a winter price rise.

The supplier shied away from sticking with a similar hike to those already seen over the last month.

Its 3.9% rise for domestic customers which kicks in from 3 January 2013 is less than half of some of its rivals.

Today EDF claimed it is “holding back rising costs” including those from the Government’s ECO social and environmental scheme. The firm’s new average standard variable price will go up £49 a year to £1,300.

Vincent de Rivaz, the firm’s chief executive said energy firms, politicians and consumer groups need to work together to design the most “cost-effective social and environmental programmes”.

He said: “I support the ambitions behind these social and environmental programmes… but we must also challenge the cost and affordability of this and other schemes. Something can and must be done for consumers.”

In contrast with some suppliers who put much blame on rising wholesale prices, EDF said wholesale energy prices rose less than 1% and so tot up to 0.1% (£1) of today’s increase.

The supplier said the increase in costs from network operators makes up 1.9% (£24), smart metering makes up 0.8% (£10) and renewable obligations makes up 0.5% (£6) of the rise. Other rising costs including VAT, Warm Home Discount, Feed in Tariff make up the remaining 0.6% (£8).